TD Cowen analyst Thomas Fitzgerald CFA reiterated a Hold rating on Frontier Group Holdings (ULCC – Research Report) today and set a price target of $10.00.
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Thomas Fitzgerald CFA has given his Hold rating due to a combination of factors related to Frontier Group Holdings’ current financial and operational position. The company has shown promising developments, particularly in terms of revenue and network strategies, which are showing positive early signs. While management expressed optimism about reshaping their network to align with post-pandemic demand, there is a need for further execution and data on future bookings to solidify confidence in their financial guidance for the upcoming fiscal year.
Additionally, Frontier’s focus on maximizing capacity during peak travel days and the maturation of newly launched bases faster than anticipated are positive indicators. The company’s introduction of new products and initiatives, like the UpFrontPlus middle seat product and the planned domestic first class, are expected to enhance revenue without relying on market share from competitors. However, uncertainties remain, such as the impact of reduced sale-leaseback gains and pilot contract negotiations, necessitating caution before shifting to a more optimistic outlook.
In another report released today, Bank of America Securities also maintained a Hold rating on the stock with a $10.00 price target.
Based on the recent corporate insider activity of 62 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of ULCC in relation to earlier this year.